GOP candidate levels allegations of pension fund mismanagement

Republican comptroller candidate Jonathan Trichter argues in a new report that the state's retirement fund has underperformed under Democratic Comptroller Tom DiNapoli.

2of3Chairman of the New York Republican State Committee Edward Cox, left, raises the hand of presumptive comptroller candidate Jonathan Trichter at the New York state Republican Convention, in New York, Thursday, May 24, 2018. (AP Photo/Richard Drew)Richard Drew3of3

The pension fund has grown by more than $50 billion under Comptroller Tom DiNapoli, a Democrat, who is vying for re-election against Republican Jonathan Trichter.

ALBANY — The state's pension fund failure to meet expectations over the past decade under Comptroller Thomas P. DiNapoli has shifted the cost of public pensions to New York taxpayers, according to a report released Monday by Republican comptroller candidate Jonathan Trichter.

The report argues that the state's Common Retirement Fund, which was at $154.6 billion in 2007 when the Long Island Democrat was appointed comptroller, has only grown to $206.9 billion in the ensuing 11 years. Trichter says it should be worth $344 billion, and says the $137 billion shortfall has resulted in taxpayers shouldering a larger share of pension costs for state and local government retirees.

For the past 10 years of audited data, the comptroller's office anticipated the fund would earn a compounded annual rate of 7.6 percent after fees, but Trichter's report claims it only reached 5.36 percent.

"What do you expect when you appoint a politician to a job that requires professional, financial acumen?," Trichter said. "The answer is never going to be overperformance."

By not hitting the projected growth, Trichter says New Yorkers have paid higher taxes to ensure benefits are paid out.

The rate of contributions from taxes were declining early in DiNapoli's tenure, but they spiked after the post-2008 recession and are now at levels from the early 1980s, according to data from the comptroller's office.

Trichter, an investment banker, worked as policy director for Republican Harry Wilson's campaign against DiNapoli in 2010. He previously worked for former Gov. Eliot Spitzer, and was a registered Democrat until joining the Republican Party shortly before its state convention in May.

A spokesman for DiNapoli's campaign responded that the numbers in Trichter's report don't add up.

"It's not surprising that a guy who just joined the party of Donald Trump is now trafficking in fake news to get attention," campaign spokesman Doug Forand said.

DiNapoli's office has maintained that the fund is well-managed, citing different national accolades and strong growth. Trichter says a review of the data indicates the fund isn't doing well comparatively and described some of the awards as the equivalent to "participation trophies for millennials."

Trichter seized on a press release from DiNapoli in May as evidence of his claim that the comptroller's office engages in myth-making. The release, as well as DiNapoli's campaign on Monday, touted 11.35 percent growth for the fund in the recent fiscal year — but Trichter noted this was more than 5 percentage points behind the S&P 500 and below the median growth of public funds worth at least $50 billion during this period.

DiNapoli's campaign said that Trichter's analysis ignored monthly benefit payments to retirees from the fund. Trichter responded that this defense of the fund's performance doesn't consider the billions of dollars in annual employer contributions added to the fund.

DiNapoli's campaign also accused Trichter of cherry-picking data: His analysis factored in the period of the recession, while the incumbent's team touted the recent three-year return of 7.54 percent and a five-year return of 8.54 percent.

Trichter scoffed at the criticism: "I should have left those years out because, when presiding over investments for the state pension fund, Tom DiNapoli gets to call mulligans? Does DiNapoli really think he's allowed to pick just the years where the market went up when measuring his investment performance?"

David began reporting in the summer of 2009 as an intern with the Legislative Gazette.

He then worked for the Daily Gazette, covering state government, gambling issues, and Saratoga County. His political blog won first prize for blogging in 2013 from the New York State Associated Press Association.

David most recently worked as capitol reporter and development strategist for New York StateWatch, an online non-partisan reporting service.